Florida Senate - 2016                        COMMITTEE AMENDMENT
       Bill No. HB 7099, 2nd Eng.
       
       
       
       
       
       
                                Ì941552"Î941552                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                   Comm: WD            .                                
                  03/02/2016           .                                
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       The Committee on Appropriations (Hukill and Lee) recommended the
       following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Paragraph (kkk) of subsection (7) of section
    6  212.08, Florida Statutes, is amended to read:
    7         212.08 Sales, rental, use, consumption, distribution, and
    8  storage tax; specified exemptions.—The sale at retail, the
    9  rental, the use, the consumption, the distribution, and the
   10  storage to be used or consumed in this state of the following
   11  are hereby specifically exempt from the tax imposed by this
   12  chapter.
   13         (7) MISCELLANEOUS EXEMPTIONS.—Exemptions provided to any
   14  entity by this chapter do not inure to any transaction that is
   15  otherwise taxable under this chapter when payment is made by a
   16  representative or employee of the entity by any means,
   17  including, but not limited to, cash, check, or credit card, even
   18  when that representative or employee is subsequently reimbursed
   19  by the entity. In addition, exemptions provided to any entity by
   20  this subsection do not inure to any transaction that is
   21  otherwise taxable under this chapter unless the entity has
   22  obtained a sales tax exemption certificate from the department
   23  or the entity obtains or provides other documentation as
   24  required by the department. Eligible purchases or leases made
   25  with such a certificate must be in strict compliance with this
   26  subsection and departmental rules, and any person who makes an
   27  exempt purchase with a certificate that is not in strict
   28  compliance with this subsection and the rules is liable for and
   29  shall pay the tax. The department may adopt rules to administer
   30  this subsection.
   31         (kkk) Certain machinery and equipment.—
   32         1. Industrial machinery and equipment purchased by eligible
   33  manufacturing businesses which is used at a fixed location in
   34  within this state, or a mixer drum affixed to a mixer truck
   35  which is used at any location within this state to mix, agitate,
   36  and transport freshly mixed concrete in a plastic state, for the
   37  manufacture, processing, compounding, or production of items of
   38  tangible personal property for sale is shall be exempt from the
   39  tax imposed by this chapter. Parts and labor required to affix a
   40  mixer drum exempt under this paragraph to a mixer truck are also
   41  exempt. If, at the time of purchase, the purchaser furnishes the
   42  seller with a signed certificate certifying the purchaser’s
   43  entitlement to exemption pursuant to this paragraph, the seller
   44  is not required to collect is relieved of the responsibility for
   45  collecting the tax on the sale of such items, and the department
   46  shall look solely to the purchaser for recovery of the tax if it
   47  determines that the purchaser was not entitled to the exemption.
   48         2. For purposes of this paragraph, the term:
   49         a. “Eligible manufacturing business” means any business
   50  whose primary business activity at the location where the
   51  industrial machinery and equipment is located is within the
   52  industries classified under NAICS codes 31, 32, and 33, and
   53  423930.
   54         b.“Eligible postharvest activity business” means a
   55  business whose primary business activity, at the location where
   56  the postharvest machinery and equipment is located, is within
   57  the industries classified under NAICS code 115114.
   58         c.As used in this subparagraph, “NAICS” means those
   59  classifications contained in the North American Industry
   60  Classification System, as published in 2007 by the Office of
   61  Management and Budget, Executive Office of the President.
   62         d.b. “Primary business activity” means an activity
   63  representing more than 50 percent of the activities conducted at
   64  the location where the industrial machinery and equipment or
   65  postharvest machinery and equipment is located.
   66         e.c. “Industrial machinery and equipment” means tangible
   67  personal property or other property that has a depreciable life
   68  of 3 years or more and that is used as an integral part in the
   69  manufacturing, processing, compounding, or production of
   70  tangible personal property for sale. The term includes tangible
   71  personal property or other property that has a depreciable life
   72  of 3 years or more which is used as an integral part in the
   73  recycling of metals for sale. A building and its structural
   74  components are not industrial machinery and equipment unless the
   75  building or structural component is so closely related to the
   76  industrial machinery and equipment that it houses or supports
   77  that the building or structural component can be expected to be
   78  replaced when the machinery and equipment are replaced. Heating
   79  and air conditioning systems are not industrial machinery and
   80  equipment unless the sole justification for their installation
   81  is to meet the requirements of the production process, even
   82  though the system may provide incidental comfort to employees or
   83  serve, to an insubstantial degree, nonproduction activities. The
   84  term includes parts and accessories for industrial machinery and
   85  equipment only to the extent that the parts and accessories are
   86  purchased before prior to the date the machinery and equipment
   87  are placed in service.
   88         f.“Postharvest activities” means services performed on
   89  crops, after their harvest, with the intent of preparing them
   90  for market or further processing. Postharvest activities
   91  include, but are not limited to, crop cleaning, sun drying,
   92  shelling, fumigating, curing, sorting, grading, packing, and
   93  cooling.
   94         g.“Postharvest machinery and equipment” means tangible
   95  personal property or other property with a depreciable life of 3
   96  years or more which is used primarily for postharvest
   97  activities. A building and its structural components are not
   98  postharvest industrial machinery and equipment unless the
   99  building or structural component is so closely related to the
  100  postharvest machinery and equipment that it houses or supports
  101  that the building or structural component can be expected to be
  102  replaced when the postharvest machinery and equipment is
  103  replaced. Heating and air conditioning systems are not
  104  postharvest machinery and equipment unless the sole
  105  justification for their installation is to meet the requirements
  106  of the postharvest activities process, even though the system
  107  may provide incidental comfort to employees or serve, to an
  108  insubstantial degree, nonpostharvest activities.
  109         3.Postharvest machinery and equipment purchased by an
  110  eligible postharvest activity business which is used at a fixed
  111  location in this state is exempt from the tax imposed by this
  112  chapter. All labor charges for the repair of, and parts and
  113  materials used in the repair of and incorporated into, such
  114  postharvest machinery and equipment are also exempt. If, at the
  115  time of purchase, the purchaser furnishes the seller with a
  116  signed certificate certifying the purchaser’s entitlement to
  117  exemption pursuant to this subparagraph, the seller is not
  118  required to collect the tax on the sale of such items, and the
  119  department shall look solely to the purchaser for recovery of
  120  the tax if it determines that the purchaser was not entitled to
  121  the exemption.
  122         4.3.A mixer drum affixed to a mixer truck which is used at
  123  any location in this state to mix, agitate, and transport
  124  freshly mixed concrete in a plastic state for sale is exempt
  125  from the tax imposed by this chapter. Parts and labor required
  126  to affix a mixer drum exempt under this subparagraph to a mixer
  127  truck are also exempt. If, at the time of purchase, the
  128  purchaser furnishes the seller with a signed certificate
  129  certifying the purchaser’s entitlement to exemption pursuant to
  130  this subparagraph, the seller is not required to collect the tax
  131  on the sale of such items, and the department shall look solely
  132  to the purchaser for recovery of the tax if it determines that
  133  the purchaser was not entitled to the exemption. This
  134  subparagraph paragraph is repealed April 30, 2017.
  135         Section 2. Effective upon this act becoming a law and
  136  operating retroactively to January 1, 2016, paragraph (n) of
  137  subsection (1) and paragraph (c) of subsection (2) of section
  138  220.03, Florida Statutes, are amended to read:
  139         220.03 Definitions.—
  140         (1) SPECIFIC TERMS.—When used in this code, and when not
  141  otherwise distinctly expressed or manifestly incompatible with
  142  the intent thereof, the following terms shall have the following
  143  meanings:
  144         (n) “Internal Revenue Code” means the United States
  145  Internal Revenue Code of 1986, as amended and in effect on
  146  January 1, 2016 2015, except as provided in subsection (3).
  147         (2) DEFINITIONAL RULES.—When used in this code and neither
  148  otherwise distinctly expressed nor manifestly incompatible with
  149  the intent thereof:
  150         (c) Any term used in this code has the same meaning as when
  151  used in a comparable context in the Internal Revenue Code and
  152  other statutes of the United States relating to federal income
  153  taxes, as such code and statutes are in effect on January 1,
  154  2016 2015. However, if subsection (3) is implemented, the
  155  meaning of a term shall be taken at the time the term is applied
  156  under this code.
  157         Section 3. Effective upon this act becoming a law and
  158  operating retroactively to January 1, 2016, paragraph (e) of
  159  subsection (1) of section 220.13, Florida Statutes, is amended
  160  to read:
  161         220.13 “Adjusted federal income” defined.—
  162         (1) The term “adjusted federal income” means an amount
  163  equal to the taxpayer’s taxable income as defined in subsection
  164  (2), or such taxable income of more than one taxpayer as
  165  provided in s. 220.131, for the taxable year, adjusted as
  166  follows:
  167         (e) Adjustments related to federal acts.—Taxpayers shall be
  168  required to make the adjustments prescribed in this paragraph
  169  for Florida tax purposes with respect to certain tax benefits
  170  received pursuant to the Economic Stimulus Act of 2008, the
  171  American Recovery and Reinvestment Act of 2009, the Small
  172  Business Jobs Act of 2010, the Tax Relief, Unemployment
  173  Insurance Reauthorization, and Job Creation Act of 2010, the
  174  American Taxpayer Relief Act of 2012, and the Tax Increase
  175  Prevention Act of 2014, and the Consolidated Appropriations Act,
  176  2016.
  177         1. There shall be added to such taxable income an amount
  178  equal to 100 percent of any amount deducted for federal income
  179  tax purposes as bonus depreciation for the taxable year pursuant
  180  to ss. 167 and 168(k) of the Internal Revenue Code of 1986, as
  181  amended by s. 103 of Pub. L. No. 110-185, s. 1201 of Pub. L. No.
  182  111-5, s. 2022 of Pub. L. No. 111-240, s. 401 of Pub. L. No.
  183  111-312, s. 331 of Pub. L. No. 112-240, and s. 125 of Pub. L.
  184  No. 113-295, and s. 143 of Division Q of Pub. L. No. 114-113,
  185  for property placed in service after December 31, 2007, and
  186  before January 1, 2021 2015. For the taxable year and for each
  187  of the 6 subsequent taxable years, there shall be subtracted
  188  from such taxable income an amount equal to one-seventh of the
  189  amount by which taxable income was increased pursuant to this
  190  subparagraph, notwithstanding any sale or other disposition of
  191  the property that is the subject of the adjustments and
  192  regardless of whether such property remains in service in the
  193  hands of the taxpayer.
  194         2. There shall be added to such taxable income an amount
  195  equal to 100 percent of any amount in excess of $128,000
  196  deducted for federal income tax purposes for the taxable year
  197  pursuant to s. 179 of the Internal Revenue Code of 1986, as
  198  amended by s. 102 of Pub. L. No. 110-185, s. 1202 of Pub. L. No.
  199  111-5, s. 2021 of Pub. L. No. 111-240, s. 402 of Pub. L. No.
  200  111-312, s. 315 of Pub. L. No. 112-240, and s. 127 of Pub. L.
  201  No. 113-295, for taxable years beginning after December 31,
  202  2007, and before January 1, 2015. For the taxable year and for
  203  each of the 6 subsequent taxable years, there shall be
  204  subtracted from such taxable income one-seventh of the amount by
  205  which taxable income was increased pursuant to this
  206  subparagraph, notwithstanding any sale or other disposition of
  207  the property that is the subject of the adjustments and
  208  regardless of whether such property remains in service in the
  209  hands of the taxpayer.
  210         3. There shall be added to such taxable income an amount
  211  equal to the amount of deferred income not included in such
  212  taxable income pursuant to s. 108(i)(1) of the Internal Revenue
  213  Code of 1986, as amended by s. 1231 of Pub. L. No. 111-5. There
  214  shall be subtracted from such taxable income an amount equal to
  215  the amount of deferred income included in such taxable income
  216  pursuant to s. 108(i)(1) of the Internal Revenue Code of 1986,
  217  as amended by s. 1231 of Pub. L. No. 111-5.
  218         4. Subtractions available under this paragraph may be
  219  transferred to the surviving or acquiring entity following a
  220  merger or acquisition and used in the same manner and with the
  221  same limitations as specified by this paragraph.
  222         5. The additions and subtractions specified in this
  223  paragraph are intended to adjust taxable income for Florida tax
  224  purposes, and, notwithstanding any other provision of this code,
  225  such additions and subtractions shall be permitted to change a
  226  taxpayer’s net operating loss for Florida tax purposes.
  227         Section 4. (1)The Department of Revenue is authorized, and
  228  all conditions are deemed to be met, to adopt emergency rules
  229  pursuant to s. 120.54(4), Florida Statutes, for the purpose of
  230  implementing the amendments made by this act to ss. 220.03(1)(n)
  231  and (2)(c), Florida Statutes, and s. 220.13(1)(e), Florida
  232  Statutes.
  233         (2)Notwithstanding any other provision of law, emergency
  234  rules adopted pursuant to subsection (1) are effective for 6
  235  months after adoption and may be renewed during the pendency of
  236  procedures to adopt permanent rules addressing the subject of
  237  the emergency rules.
  238         (3)This section expires January 1, 2020.
  239         Section 5. Effective upon this act becoming a law and
  240  applicable to taxable years beginning on or after January 1,
  241  2016, section 220.222, Florida Statutes, is amended to read:
  242         220.222 Returns; time and place for filing.—
  243         (1)(a) Returns required by this code shall be filed with
  244  the office of the department in Leon County or at such other
  245  place as the department may by regulation prescribe. All returns
  246  required for a DISC (Domestic International Sales Corporation)
  247  under paragraph 6011(c)(2) of the Internal Revenue Code shall be
  248  filed on or before the 1st day of the 10th month after following
  249  the close of the taxable year; all partnership information
  250  returns shall be filed on or before the 1st day of the 4th 5th
  251  month after following the close of the taxable year; and all
  252  other returns shall be filed on or before the 1st day of the 5th
  253  4th month after following the close of the taxable year or the
  254  15th day after following the due date, without extension, for
  255  the filing of the related federal return for the taxable year,
  256  unless under subsection (2) one or more extensions of time, not
  257  to exceed 6 months in the aggregate, for any such filing is
  258  granted.
  259         (b)Notwithstanding paragraph (a), for taxable years
  260  beginning before January 1, 2026, returns of taxpayers with a
  261  taxable year ending on June 30 shall be filed on or before the
  262  1st day of the 4th month after the close of the taxable year or
  263  the 15th day after the due date, without extension, for the
  264  filing of the related federal return for the taxable year,
  265  unless under subsection (2) one or more extensions of time for
  266  any such filing is granted.
  267         (2)(a) When a taxpayer has been granted an extension or
  268  extensions of time within which to file its federal income tax
  269  return for any taxable year, and if the requirements of s.
  270  220.32 are met, the filing of a request for such extension or
  271  extensions with the department shall automatically extend the
  272  due date of the return required under this code until 15 days
  273  after the expiration of the federal extension or until the
  274  expiration of 6 months from the original due date, whichever
  275  first occurs.
  276         (b) The department may grant an extension or extensions of
  277  time for the filing of any return required under this code upon
  278  receiving a prior request therefor if good cause for an
  279  extension is shown. However, the aggregate extensions of time
  280  under paragraph paragraphs (a) and this paragraph must (b) shall
  281  not exceed 6 months. An No extension granted under this
  282  paragraph is not shall be valid unless the taxpayer complies
  283  with the requirements of s. 220.32.
  284         (c) For purposes of this subsection, a taxpayer is not in
  285  compliance with the requirements of s. 220.32 if the taxpayer
  286  underpays the required payment by more than the greater of
  287  $2,000 or 30 percent of the tax shown on the return when filed.
  288         (d)For taxable years beginning before January 1, 2026, the
  289  6-month time period in paragraphs (a) and (b) shall be 7 months
  290  for taxpayers with a taxable year ending June 30 and shall be 5
  291  months for taxpayers with a taxable year ending December 31.
  292         Section 6. Effective upon this act becoming a law and
  293  applicable to taxable years beginning on or after January 1,
  294  2017, section 220.241, Florida Statutes, is amended to read:
  295         220.241 Declaration; time for filing.—
  296         (1) A declaration of estimated tax under this code shall be
  297  filed before the 1st day of the 6th 5th month of each taxable
  298  year, except that if the minimum tax requirement of s. 220.24(1)
  299  is first met:
  300         (a)(1) After the 3rd month and before the 6th month of the
  301  taxable year, the declaration shall be filed before the 1st day
  302  of the 7th month;
  303         (b)(2) After the 5th month and before the 9th month of the
  304  taxable year, the declaration shall be filed before the 1st day
  305  of the 10th month; or
  306         (c)(3) After the 8th month and before the 12th month of the
  307  taxable year, the declaration shall be filed for the taxable
  308  year before the 1st day of the succeeding taxable year.
  309         (2)Notwithstanding subsection (1), for taxable years
  310  beginning before January 1, 2026, taxpayers with a taxable year
  311  ending on June 30 shall file declarations before the 1st day of
  312  the 5th month of each taxable year, unless paragraph (1)(a),
  313  paragraph (1)(b), or paragraph (1)(c) applies.
  314         Section 7. Effective upon this act becoming a law and
  315  applicable to taxable years beginning on or after January 1,
  316  2017, subsection (1) of section 220.33, Florida Statutes, is
  317  amended to read:
  318         220.33 Payments of estimated tax.—A taxpayer required to
  319  file a declaration of estimated tax pursuant to s. 220.24 shall
  320  pay such estimated tax as follows:
  321         (1) If the declaration is required to be filed before the
  322  1st day of the 6th 5th month of the taxable year, the estimated
  323  tax shall be paid in four equal installments. The first
  324  installment shall be paid at the time of the required filing of
  325  the declaration; the second and third installments shall be paid
  326  before the 1st day of the 7th month and before the 1st day of
  327  the 10th month of the taxable year, respectively; and the fourth
  328  installment shall be paid before the 1st day of the next taxable
  329  year.
  330         Section 8. Effective upon this act becoming a law and
  331  applicable to taxable years beginning on or after January 1,
  332  2017, paragraph (c) of subsection (2) of section 220.34, Florida
  333  Statutes, is amended to read:
  334         220.34 Special rules relating to estimated tax.—
  335         (2) No interest or penalty shall be due or paid with
  336  respect to a failure to pay estimated taxes except the
  337  following:
  338         (c) The period of the underpayment for which interest and
  339  penalties apply shall commence on the date the installment was
  340  required to be paid, determined without regard to any extensions
  341  of time, and shall terminate on the earlier of the following
  342  dates:
  343         1. The 1st first day of the 5th fourth month after
  344  following the close of the taxable year;
  345         2.For taxable years beginning before January 1, 2026, for
  346  taxpayers with a taxable year ending June 30, the 1st day of the
  347  4th month after the close of the taxable year; or
  348         3.2. With respect to any portion of the underpayment, the
  349  date on which such portion is paid.
  350  
  351  For purposes of this paragraph, a payment of estimated tax on
  352  any installment date shall be considered a payment of any
  353  previous underpayment only to the extent such payment exceeds
  354  the amount of the installment determined under subparagraph
  355  (b)1. for such installment date.
  356         Section 9. For the 2016-2017 fiscal year, the sum of
  357  $100,374 in nonrecurring funds is appropriated from the General
  358  Revenue Fund to the Department of Revenue for the purpose of
  359  implementing ss. 220.03, 220.13, 220.222, 220.241, 220.33 and
  360  220.34, Florida Statutes, as amended by this act.
  361         Section 10. Except as otherwise expressly provided in this
  362  act and except for this section, which shall take effect upon
  363  this act becoming a law, this act shall take effect July 1,
  364  2016.
  365  
  366  ================= T I T L E  A M E N D M E N T ================
  367  And the title is amended as follows:
  368         Delete everything before the enacting clause
  369  and insert:
  370                        A bill to be entitled                      
  371         An act relating to taxation; amending s. 212.08, F.S.;
  372         revising definitions regarding certain industrial
  373         machinery and equipment; removing the expiration date
  374         on the exemption for purchases of certain machinery
  375         and equipment; revising the definition of the term
  376         “eligible manufacturing business” for purposes of
  377         qualification for the sales and use tax exemption;
  378         providing definitions for certain postharvest
  379         machinery and equipment, postharvest activities, and
  380         eligible postharvest activity businesses; providing an
  381         exemption for the purchase of such machinery and
  382         equipment; amending s. 220.03, F.S.; adopting the 2016
  383         version of the Internal Revenue Code; providing
  384         retroactive applicability; amending s. 220.13, F.S.;
  385         incorporating a reference to a recent federal act into
  386         state law for the purpose of defining the term
  387         “adjusted federal income”; revising the treatment by
  388         this state of certain depreciation of assets allowed
  389         for federal income tax purposes; providing retroactive
  390         applicability; authorizing the Department of Revenue
  391         to adopt emergency rules; amending s. 220.222, F.S.;
  392         revising due dates for partnership information returns
  393         and corporate tax returns; amending s. 220.241, F.S.;
  394         revising due dates to file a declaration of estimated
  395         corporate income tax; amending s. 220.33, F.S.;
  396         revising the due date of estimated payments of
  397         corporate income tax; amending 220.34, F.S.; revising
  398         the dates for purposes of calculating interest and
  399         penalties on underpayments of estimated corporate
  400         income tax; providing an appropriation; providing
  401         effective dates.